Bolivia is exploring integrating USDT, a widely used stablecoin, into its national payment system to supplement the Bolivian boliviano and the U.S. dollar.

The proposal fits Bolivia’s broader push to embrace digital assets since lifting the crypto ban in 2024, with the aim of bringing digital assets into the formal financial system and allowing banks to offer crypto-related products and services, including stablecoin-based accounts.

The move comes as Bolivia loosened the dollar peg in 2026, creating currency pressures that have boosted interest in stablecoins for payments and savings.

Key questions include how the network would handle congestion, how AML rules would be enforced on blockchain transactions, and whether USDT would be treated as foreign currency, a payment instrument, or a new category affecting reporting requirements.

Economy Minister José Gabriel Espinoza said a technical study is underway to evaluate regulatory and operational aspects, with ongoing work on the legal framework.

Regulators are preparing AML/CFT rules to align with international standards and to build confidence in regulated digital payment services.

The government views USDT integration as a way to expand payment options, support business growth, and broaden access to digital financial services while maintaining regulatory control.

Crypto adoption surged after the central bank lifted restrictions in 2024, with transaction volumes rising dramatically in 2025 and overall volumes up over 600% year over year.

If USDT is registered locally or subject to real-time reserve attestations, the project would involve engagement with Tether and could set a precedent for regulators elsewhere.

Approved USDT usage could enable daily transactions and remittances, reducing cash dependence and potentially accelerating international trade.

Banks like Banco Unión, Banco FIE, and Banco BISA are already expanding into the stablecoin space, offering digital asset services and custody.

Espinoza noted the government is studying safe implementation amid a lack of a formal regulatory framework and after the Central Bank eased its ban on digital asset operations.